Charles Schwab
Schwab charges $0 for online stock and ETF trades and $0.65 per options contract, with no account minimum. With deep research, strong customer service, and a full-service platform, it's a top all-around brokerage — pricing verified on Schwab's own page.
Is the Charles Schwab worth it?
Charles Schwab is the other heavyweight every investor should consider. It charges $0 for online stock and ETF trades and $0.65 per options contract, with no account minimum — the same baseline as Fidelity, paired with a reputation for strong customer service and physical branches.
As with any brokerage, the protection nuance matters: invested assets are not FDIC-insured. Schwab brokerage accounts carry SIPC coverage for securities if the firm fails, while cash swept into Schwab Bank is separately FDIC-insured. Neither protects against investment losses.
The main thing to watch is Schwab’s default cash sweep, which pays a low yield unless you actively move idle cash into a money fund or higher-yield option. But for a full-service brokerage with $0 stock/ETF trades, deep research, and an integrated banking-and-investing ecosystem, Schwab is excellent. Fees can change; this is not financial advice. Confirm current pricing before opening.
How does a brokerage account work?
A brokerage account lets you buy and sell investments yourself — stocks, ETFs, and more. Leading brokers charge $0 commission on U.S. stocks and ETFs. Your money is typically SIPC-protected against the firm failing, but that does not protect against investment losses.
What are the pros and cons of the Charles Schwab?
The Charles Schwab stands out for $0 online stock and ETF commissions, though $0.65 per options contract.
- $0 online stock and ETF commissions
- No account minimum
- Deep research, strong service, and branch access
- $0.65 per options contract
- Default cash sweep yields are low unless you move cash
- Not FDIC-insured (brokerage assets carry SIPC protection)
Who should get the Charles Schwab?
The Charles Schwab is best for investors who want a full-service brokerage with $0 stock/ETF trades.
- Investors who want a full-service brokerage with $0 stock/ETF trades
- People who value strong customer service and branch access
- Anyone who wants research, banking, and investing in one ecosystem
How does the Charles Schwab compare?
Among the 8 online brokerages we track, the Charles Schwab ranks #2 with a money8020 score of 96/100.
| Product | Score | Tier | Provider |
|---|---|---|---|
| Fidelity | 97 | Essential | Fidelity Investments |
| Charles Schwab | 96 | Essential | Charles Schwab |
| Interactive Brokers IBKR Lite | 96 | Essential | Interactive Brokers |
| E*TRADE | 94 | Essential | Morgan Stanley |
| Robinhood | 94 | Essential | Robinhood |
See all online brokerages, ranked →
Common mistakes to avoid with a brokerage account
- Assuming "$0 commission" means no costs — options, margin, and broker-assisted trades can carry fees.
- Confusing SIPC protection with insurance against investment losses.
- Trading frequently and letting taxes and spreads erode returns.
- Holding uninvested cash that earns little instead of a swept high-yield option.
Key takeaways
- Charles Schwab earns a money8020 score of 96/100, ranking #2 of 8 online brokerages.
- $0 online stock and ETF commissions
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- Best for investors who want a full-service brokerage with $0 stock/ETF trades.
- Rate and FDIC status fetched from Charles Schwab and corroborated against a regulator.
Frequently asked questions about the Charles Schwab
What does Charles Schwab charge for trades?
Per Schwab, listed stocks and ETFs trade for $0 commission online, and options are $0 plus $0.65 per contract. There is no account minimum to open a brokerage account. Other fees may apply for broker-assisted trades or specialized services.
Is a Schwab brokerage account FDIC insured?
Brokerage assets are not FDIC-insured. Schwab brokerage accounts carry SIPC protection, which covers securities up to applicable limits if the firm fails. Cash you sweep into Schwab Bank deposit accounts is separately FDIC-insured, but invested assets are not.
Is my money safe in the Charles Schwab?
Brokerage accounts are typically SIPC-protected against the firm failing, but that does not protect against investment losses — the value of your holdings can fall.
Does the Charles Schwab really charge $0 commissions?
Leading brokers charge $0 commission on online U.S. stock and ETF trades. Other products — options contracts, broker-assisted trades, or margin — may still carry fees, so check the schedule.
Sources
We fetched these figures from the provider and corroborated them against a regulator, last checked May 30, 2026. Primary sources: